BILL ANALYSIS Ó
SB 566
Page 1
SENATE THIRD READING
SB 566 (Leno)
As Amended September 6, 2013
Majority vote
SENATE VOTE :39-0
PUBLIC SAFETY 7-0 AGRICULTURE 7-0
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|Ayes:|Ammiano, Melendez, |Ayes:|Eggman, Olsen, Atkins, |
| |Jones-Sawyer, Mitchell, | |Dahle, Pan, Quirk, Yamada |
| |Quirk, Skinner, Waldron | | |
| | | | |
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APPROPRIATIONS 16-1
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|Ayes:|Gatto, Harkey, Bocanegra, | | |
| |Bradford, Ian Calderon, | | |
| |Campos, Donnelly, Eggman, | | |
| |Gomez, Hall, Holden, | | |
| |Linder, Pan, Quirk, | | |
| |Wagner, Weber | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bigelow | | |
| | | | |
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SUMMARY : Allows the regulated cultivation and processing of
industrial hemp upon federal approval, as specified.
Specifically, this bill :
1)Establishes the California Industrial Hemp Farming Act (Act).
2)Defines "industrial hemp" as a fiber or oilseed crop, or both,
that is limited to nonpsychoactive types of the plant Cannabis
sativa L. and the seed produced therefrom, having no more than
three-tenths of 1% tetrahydrocannabinol (THC) contained in the
dried flowering tops, and that is cultivated and processed
exclusively for the purpose of producing the mature stalks of
the plant, fiber produced from the stalks, oil or cake made
from the seeds of the plant, or any other compound,
manufacture, salt, derivative, mixture, or preparation of the
mature stalks, except the resin or flowering tops extracted
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therefrom, fiber, oil, or cake, or the sterilized seed or any
component of the seed, of the plant that is incapable of
germination.
3)Revises the definition of "marijuana" to clarify that it does
not include industrial hemp, as defined in this bill, except
where the plant is cultivated or processed for purposes not
expressly allowed.
4)Defines specified terms related to the cultivation of
industrial hemp.
5)States that there is in the California Department of Food and
Agriculture (CDFA) an Industrial Hemp Advisory Board (Board)
and specifies who shall sit on the Board.
6)States except when grown by an established agricultural
research institution or by a registered seed breeder
developing a new California seed cultivar, industrial hemp
shall only be grown if it is on the list of approved seed
cultivars.
7)Provides guidelines on what shall be included in the list of
approved seed cultivars.
8)Provides the procedure for the adoption, amendment or repeal
of the list of approved seed cultivars.
9)States that, except for an established agricultural research
institution, and before cultivation, a grower of industrial
hemp for commercial purposes shall register with the
commissioner of the county in which the grower intends to
engage in industrial hemp cultivation.
10)States that, except for an established agricultural research
institution, and before cultivation, a seed breeder shall
register with the commissioner of the county in which the seed
breeder intends to engage in industrial hemp cultivation.
11)Specifies the application procedures for a seed breeder and a
grower of industrial hemp to register with the commissioner of
the county.
12)Requires the County Agricultural Commissioner to transmit
information collected during the application process to CDFA.
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13)Provides requirements for keeping and maintaining records
pertaining to the seed development plan.
14)Requires CDFA to establish a registration fee and appropriate
renewal fee to be paid by growers of industrial hemp for
commercial purposes and seed breeders, not including an
established agricultural research institution, to cover the
costs of implementing, administering, and enforcing these
provisions.
15)States that fees collected by the commissioners upon
registration or renewal shall be forwarded, according to
procedures set by CDFA, to the CDFA for deposit into the
Department of Food and Agriculture Fund to be used for the
administration and enforcement of these provisions.
16)States that, except when grown by an established agricultural
research institution or registered seed breeder, industrial
hemp shall be grown only as a densely planted fiber or oilseed
crop, or both, in acreages of not less than five acres at the
same time, and no portion of an acreage of industrial hemp
shall include plots of less than one contiguous acre.
17)Requires registered seed breeders to grow industrial hemp as
densely as possible in dedicated acreage of not less than one
acre and in accordance with the seed development plan.
18)Requires registered seed breeders, for purposes of seed
production, to only grow industrial hemp as a densely planted
crop in acreages of not less than two acres at the same time,
and no portion of the acreage of industrial hemp shall include
plots of less than one contiguous acre.
19)Prohibits ornamental and clandestine cultivation, as well as
the pruning, culling, and tending of individual plants, of
industrial hemp.
20)Prohibits the pruning and tending of individual industrial
hemp plants, except as provided.
21)Prohibits the culling of industrial hemp, except as provided.
22)Requires all plots to have adequate signage indicating they
are industrial hemp.
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23)Provides that industrial hemp shall include products imported
under the Harmonized Tariff Schedule of the United States
(2013) of the United States International Trade Commission.
24)Requires, except when industrial hemp is grown by an
established agricultural research institution, a registrant
that grows industrial hemp under this Act to obtain a
laboratory test report indicating the THC levels of a random
sampling of the dried flowering tops of the industrial hemp
grown before the harvest of each crop as specified.
25)Requires certain documentation to accompany the sample of
dried flowering tops of the industrial hemp plant collected
for THC testing.
26)Mandates, not later than January 1, 2019, or five years after
the provisions of this bill are authorized under federal law,
whichever is later, the Attorney General to report to the
Assembly and Senate Agriculture Committees and the Assembly
and Senate Public Safety Committees the reported incidents, if
any, of the following:
a) A field of industrial hemp being used to disguise
marijuana cultivation; or,
b) Claims in a court hearing by persons other than those
specifically exempted that marijuana is industrial hemp.
27)States pursuant to existing law, this section related to the
Attorney Generals' report is repealed on January 1, 2023, or
four years after the date that the report is due, whichever is
later.
28)Requires, not later than January 1, 2019, or five years after
the provisions of this bill are authorized under federal law,
whichever is later, the board, in consultation with the Hemp
Industries Association or its successor industry association,
to report the following to the Assembly and Senate Agriculture
committees and the Assembly and Senate Public Safety
committees:
a) The economic impacts of industrial hemp cultivation,
processing, and product manufacturing in California; and,
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b) The economic impacts of industrial hemp cultivation,
processing, and product manufacturing in other states that
may have permitted industrial hemp cultivation.
29)States that these provisions shall not become operative
unless authorized under federal law.
30) Requires, if these provisions become operative, the Attorney
General (AG) to issue an opinion on the extent of
authorization under federal law and California law, the
operative date of those provisions, and whether federal law
imposes any limitations that are inconsistent with these
provisions.
31)Requires the AG to complete the opinion required in the
provisions of this Act as soon as possible or within four
months of authorization under federal law.
32)States, if in the AG's opinion it is determined that the
provisions of this Act are not sufficient to comply with
federal law, the CDFA, in consultation with the Board, shall
establish procedures that meet the requirements of federal
law.
33)States that the AG shall post the opinion on its Internet Web
site.
34)Makes various legislative declarations and findings on
industrial hemp.
EXISTING LAW :
1)Defines "marijuana" as all parts of the plant Cannabis sativa
L., whether growing or not; the seeds thereof; the resin
extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the
plant, its seeds or resin. It does not include the mature
stalks of the plant, fiber produced from the stalks, oil or
cake made from the seeds of the plant, any other compound,
manufacture, salt, derivative, mixture, or preparation of the
mature stalks (except the resin extracted therefrom), fiber,
oil, or cake, or the sterilized seed of the plant which is
incapable of germination.
2)States that except as otherwise provided by law, every person
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who plants, cultivates harvests, dries, or processes, any
marijuana, or any part thereof, except as otherwise provided
by law, shall be punishable by imprisonment in the county jail
as specified.
3)States that except as otherwise provided by law, every person
that possesses marijuana for the purposes of sale shall be
punished by imprisonment in the county jail as specified.
4)Provides, except as authorized by law, every person who
possesses any concentrated cannabis shall be punished by
imprisonment in the county jail for a period of not more than
one year or by a fine of not more than $500, or by both such
fine and imprisonment, or shall be punished by imprisonment in
the county jail as specified.
5)States that except as authorized by law, every person who
possesses not more than 28.5 grams of marijuana, other than
concentrated cannabis, is guilty of an infraction punishable
by a fine of not more than $100.
6)States that except as authorized by law, every person who
possesses more than 28.5 grams of marijuana, other than
concentrated cannabis, shall be punished by imprisonment in
the county jail for a period of not more than six months or by
a fine of not more than $500, or by both such fine and
imprisonment.
EXISTING FEDERAL LAW :
1)Defines "marijuana" as "all parts of the plant Cannabis sativa
L., whether growing or not; the seeds thereof; the resin
extracted from any part of such plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of such
plant, its seeds or resin. Such term does not include the
mature stalks of such plant, fiber produced from such stalks,
oil or cake made from the seeds of such plant, any other
compound, manufacture, salt, derivative, mixture, or
preparation of such mature stalks (except the resin extracted
therefrom), fiber, oil, or cake, or the sterilized seed of
such plant which is incapable of germination."
2)Places controlled substances in five schedules, ranked by
medical benefit and potential for abuse. Schedule I
controlled substances are deemed to have no medical benefits
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and high potential for abuse.
3)Lists marijuana as a schedule I controlled substance.
4)Lists THC as a separate schedule I substance. As clarified by
case law, THC in Schedule I applies only to synthetic THC,
because "if naturally-occurring THC were covered under THC,
there would be no need to have a separate category for
marijuana, ? which contains naturally-occurring THC."
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Minor, likely absorbable, costs to CDFA to support the
Industrial Hemp Advisory Board.
2)Minor, likely absorbable, costs to CDFA to establish and
maintain a list of approved seed varietals.
3)Unknown administrative costs, fully covered by fee revenue, to
county agricultural commissions to operate a registration
program and to implement and enforce the act.
4)Costs of laboratory reports would be borne by registrants.
5)Minor absorbable reporting costs to the Department of Justice.
COMMENTS : According to the author, "SB 566 will allow
California farmers to be one of the most prepared farmers in
America to grow hemp once the federal government allows it.
Industrial hemp is a variety of the species Cannabis sativa L.
that has no psychoactive qualities because it contains less than
three-tenths of one percent THC. Even though it is a distant
cousin of marijuana, which ranges from three to 15 percent THC
content, industrial hemp is not a drug and it is not marijuana.
"This bill creates jobs. California companies account for over
50 percent of the revenues of the United States retail market
for hemp products which is approximately $500 million and
growing. California hemp cultivation will create the need for
hemp seed and fiber processing facilities. With so many
California-based hemp industry companies, investors will take
the opportunity to support the development of hemp processing
operations that would employ numerous Californians.
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"Hemp is an extremely beneficial crop for farmers. Because it
grows in dense groves, hemp is a smother crop that requires
little or no pesticides or herbicides. Hemp is also a great
rotation crop as it leaves nutrients in the soil for the next
crop.
"Because of the perceived similarity to marijuana, industrial
hemp has not been grown in United States since the 1950s;
however, the two are very different. The industrial hemp plant
is a stalk similar to bamboo, has few branches, has been bred
for maximum production of seed, and grows to a height up to 16
feet. It is planted in densities of 100 to 300 plants per
square yard. Marijuana is a tropical variety of cannabis that
usually grows to a height of six feet and has been bred to have
many branches to maximize flowering and minimize seeding.
Unlike hemp, marijuana is planted with wide spaces between
plants to maximize flowering.
"Because this bill is operative only upon federal approval,
there are no conflicts with federal law. Federal approval may
take several different forms including a federal administrative
waiver or a change in federal law. The Industrial Hemp Farming
Act of 2013 (H.R. 525 and S. 359) has been introduced in both
houses of Congress with bipartisan support including strong
support from Senate Majority Leader Mitch McConnell and Senator
Rand Paul. If the current federal legislation passes, the
federal government will defer to states to regulate hemp
cultivation.
"SB 566 provides the necessary framework, provisions and
regulations for California hemp cultivation. Once federal
permission for cultivation is given, the Attorney General will
issue an opinion on the extent of federal approval and will note
whether federal law imposes any limitations that are
inconsistent with the provisions of this bill. The Attorney
General will then post the opinion on their website. From
there, the provisions of the bill outline the cultivation
requirements and restrictions.
"Before planting, farmers must register with their County
Agricultural Commissioner and give basic information about the
cultivation plot location and what type of California Department
of Food and Agriculture-approved hemp they will grow. In
addition, hemp must be grown in a minimum of five continuous
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acres and farmers must post signage surrounding the field of
cultivation to indicate that industrial hemp is grown and not
anything else. Similar requirements are in place in Canada and
have been effective in thwarting people from stealing crops.
"This bill also contains a number of safeguards to ensure that
hemp crops meet the three-tenths of one percent THC. Prior to
harvest, growers must obtain a laboratory test report from a
federal DEA registered laboratory documenting the THC content of
their crop, the size of the acreage, and its G.P.S. location.
Farmers must retain a copy of the test report for two years from
its date of sampling, make it available to law enforcement
officials upon request, and are required to provide a copy to
each person purchasing, transporting, or otherwise obtaining the
oil, fiber, or seed of the plant. If you do not pass the test,
you cannot sell your product.
"SB 566 ensures that law enforcement will not be negatively
impacted. Under the terms of this bill, all flowering tops of
the industrial hemp plant, which have no legal commercial
application, are not permitted if removed from the field of
cultivation. Although hemp flowers have no psychoactive effect,
this relieves law enforcement of any need to distinguish hemp
from marijuana. For these reasons, the bill enjoys the support
of the California State Sheriffs' Association.
"Five years after federal approval, the Attorney General will
report to the Legislature on any law enforcement impacts of
industrial hemp cultivation and the Industrial Hemp Advisory
Board, which is in place to advise the Secretary of the
California Department of Food and Agriculture on issues related
to hemp, is also required to report to the Legislature regarding
the economic impacts of hemp cultivation.
"All together, these provisions lay the necessary groundwork for
California farmers to be prepared for the federal government's
allowance of hemp cultivation and to quickly begin meeting the
needs and demands of California businesses and consumers.
Adding no cost to law enforcement efforts, industrial hemp will
provide a huge benefit to farmers, manufacturers, and the
environment and will create jobs."
Please see the policy committee analysis for a full discussion
of this bill.
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Analysis Prepared by : Stella Choe / PUB. S. / (916) 319-3744
FN: 0002555